NEW YORK (AP) -- Wedbush initiated coverage of Renewable Energy Group on Friday with an "outperform" rating, saying that the biodiesel producer is likely to benefit from healthy market conditions.
Analyst Craig Irwin said that the company is expanding to better handle increasing demand. That puts the company in a better position for strong earnings before interest, taxes, depreciation and amortization growth, Irwin said.
Irwin anticipates that Renewable Energy will also continue to look for acquisitions, likely concentrating on potential deals that will help to diversify its geographic footprint and product offerings.
Irwin gave Renewable Energy a $17 price target.
Shares of Renewable Energy Group Inc. added 18 cents to $13.05 in afternoon trading.